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by alkonaut 3278 days ago
> From the workers' perspective though, it would create a bimodal distribution where employees of surviving shops are better off, while the rest is fired. I'm not sure if that's a positive outcome

Actually ending up with a positive outcome requires more reform than just minimum wage - which may actually be negative (on its own, and short term).

There has to be good unemployment benefits for all, you have to have good employment security so hours can't be cut and so on and so forth. The idea is to have such a strong labor collective that driving bad employers out of business is a sustainable strategy. Organization level needs to be pretty high, say at least 50% for unions to have any real power here.

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A minimum wage seems like an attempt to compensate for weak labor collectives and the lack of a safety net. Sweden, for example, has no minimum wage, but a combination of strong unions/labor collectives and decent unemployment benefits manage to keep wages up anyway.
My concern minimum wage wise is simply that firms seem to use social programs to subsidise wages, rather than a minimum wage I'd like to see the tax write off removed for wages below the cost of living. Below the poverty line I'd like to see employers pick up the entire tax bill of their workers.